The post-COVID employment market is suffering from a skill deficit, and recruitment teams are scratching the surface for answers!
As a result, the increased need for streamlined recruiting processes and novel hiring strategies has boosted the market’s growth potential. According to a recent analysis by Grand View Research, Inc., the global recruitment process outsourcing market is estimated to reach USD 20.8 billion by 2027, growing at an 18.5% CAGR throughout the forecast period.
HR leaders are well aware that finding outstanding candidates, particularly those who are a good fit for the corporate culture, costs time and money. Hiring the wrong person can not only have a negative influence on the team but on customers and the company as a whole.
Naturally, many businesses are turning to a tried-and-true solution: contingency recruiters!
But, how exactly does contingency recruitment help companies, and what are the benefits of using a service like that for your business? Read on to find out!
1) You will Have Greater Access to Specialized Talent
Today’s recruiters frequently struggle to find applicants who match the job specifications.
When using an online job board, website, or community to recruit, 30.9% of businesses found it to be the most challenging to receive too many irrelevant applications, while 22.6% found it to be the most challenging to receive too many applicants who were not qualified.
Businesses will place more emphasis on employing people based on their skills in 2022 rather than hiring people for fixed-job roles.
To grow the workforce, Gartner advises “focusing less on roles, than on the skills necessary to drive the organization’s competitive edge and the workflows that fuel this advantage,” as roles tend to group unrelated skills.
Contingency recruiters assist in resolving this issue by increasing the caliber of applicants who better fit open roles within your organization. They assist you in identifying the specialized expertise with relevant practical experience that you require for your project.
Additionally, you might be looking for knowledge that your current team lacks. Contingency recruitment firms provide you with the ideal candidate with a particular skill set to ensure that your project is successfully finished by the deadline.
You may employ more wisely and with less work by outsourcing the hiring process to a contingency recruiter. This is so that they can refer qualified individuals to their clients who are already part of the finest recruiters’ extensive established network.
They understand how to draw in the appropriate folks because they are professionals and specialists in what they do. In-house recruiting would limit a company’s search options because they would not have access to this kind of information or networking.
2) You will Have a Revamped Hiring Process that will Save Time
Nowadays, traditional job boards flood you with applicants, and many of them are underqualified for the post. These conventional job boards encourage people to apply for positions they are not qualified for, which ultimately wastes your time as you sort through hundreds of resumes from applicants who will never fit your company’s requirements.
It costs time and effort to review all of these resumes. Additionally, you are allowing compensation and benefits for the staff members who are reviewing each résumé. How can you solve this issue?
The fact that contingent recruiting improves the caliber of your employees and reduces turnover is its most significant advantage in addressing the issue.
The main responsibility of contingent recruitment companies is to find the best individuals on the market; as a result, they conduct extensive research and analysis to increase the quality of their talent pool.
Contingency recruiters are more knowledgeable about tech advancements and how to approach applicants. They can protect you from candidates dropping out and other difficulties in hiring.
By enabling you to hire the best and brightest personnel, it removes unqualified or inept employees.
- The contingent recruiter will save you time and money by only providing you with qualified prospects. This is crucial because it will allow you to decrease the time it takes to fill available positions by allowing you to speak with qualified prospects directly rather than spending time sorting through the resumes of unqualified applicants.
- Interview scheduling, comments, and assistance with salary negotiations will all be made by the recruiting company. As a result, you may save time on these HR-related difficulties and concentrate entirely on the prospect and determining if they’re a good fit for your company.
By lowering expenses, boosting business productivity, and finding a better fit for the position, contingent recruiting is intended to enhance the hiring process. This is made possible by:
- Reducing Costs: Employing an outside recruiting firm to find quality candidates for available positions is a more cost-effective solution than using in-house recruiting. Consequently, you lack the staff to deal with the effort and expense of interviewing and recruiting a candidate who turned out to be unsuitable or quit too soon.
- Enhancing Effectiveness: You can outsource the hiring process by using contingent recruiting, which eliminates the need for you to spend time away from your other obligations to meet with applicants and conduct interviews for future job openings. You save time as a result, allowing you to accomplish more in less time.
- Finding a Better Fit: Since the recruiting firm is not restricted to people in your neighborhood, your business can identify the ideal candidate for the position more easily. Since they have access to individuals from all across the nation, they can locate and recommend a candidate who is exactly right for the job even if they live in a different city or state.
3) You will Save Up on Recruitment Costs
Results are what matter to contingent recruiting companies. Under this strategy, recruiters find and present prospects who may be suitable for your open position with the hope that your business would hire them so they can get paid a placement fee.
This charge often ranges from 15 to 30 percent of the new hire’s anticipated first-year compensation.
The company does not get paid if they don’t provide the hired candidate. Many businesses work with contingency recruiters in an effort to broaden their search for the best applicants available, not simply the best prospects available.
This shields you against unforeseen circumstances in the future and allows you to reduce your recruitment budget without having to pay the costs associated with a poor hire.
A study estimates that in 2019, contingent hiring accounted for $130 billion of staffing firms‘ overall income ($150 billion+ when direct hire revenue is included). This demonstrates the enormous potential for financial gain in the US contract industry.
Because it takes a small initial investment and little time commitment from the company, contingent recruiting is a preferred option for emerging firms when compared to other methods of employee sourcing and hiring.
Contingent recruitment may be a fantastic solution to substitute crucial duties, skill gaps, and temporary employment. Testing the waters with a certain project could be quite beneficial for your organization (or seasonal labor).
Want to hire contractors and find out more about the benefits of working with contingency recruiters? Contact us at BenchPoint, your go-to healthtech recruitment agency, and we’ll be pleased to help you through the process.